Risk appetite remains under pressure as higher bond yields challenge equity valuations, particularly across technology and AI-linked stocks. The MSCI Asia Pacific share benchmark fell 0.6%, with South Korea’s Kospi sliding 2.6%, highlighting weakening sentiment around AI investment. Nasdaq futures also slipped 0.5% after further weakness in US semiconductors.
Oil has eased slightly after Trump signalled he is holding off on fresh strikes against Iran, but the broader energy backdrop remains tense, with the Strait of Hormuz effectively shut and US–Iran negotiations showing little meaningful progress. Brent is still trading around $110 per barrel.
The global bond selloff remains the dominant theme, with long-end yields in the US and Japan near multi-year highs, reflecting concerns that elevated oil prices, sticky inflation, and resilient economic activity could force central banks to keep policy tighter for longer. Japan’s Ministry of Finance has cast doubt on selling Treasuries to support the yen, while Japanese Finance Minister Satsuki Katayama separately indicated she would weigh the impact on bond markets carefully. USD/JPY is currently trading at 159.02.
On the economic calendar, G7 finance ministers and central bankers are wrapping up their meeting in Paris, while Russian President Vladimir Putin is visiting China to meet with Xi Jinping to discuss deepening energy ties.
• Bitcoin was little changed at $76,894.23
• Ether rose 0.9% to $2,135.47
• The yield on 10-year Treasuries advanced 2 basis points to 4.61%
